Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2009

Governor's Budget Recommendation FY 2009

Outside Section 5



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Consolidated Net Surplus Distribution

SECTION 5.   (A) Section 35FF of chapter 10 of the General Laws, inserted by section 10 of chapter 140 of the acts of 2007, is hereby amended by adding the following 3 sentences:- The secretary of energy and environmental affairs, in this section called the secretary, shall be the trustee of the fund. The secretary shall expend monies in the fund, without further appropriation but subject to approval of an annual spending plan by the secretary of administration and finance, to promote alternative and clean energy investments. The secretary shall adopt regulations, after a public hearing, governing these expenditures.

(B) Said chapter 10 is hereby further amended by inserting after section 69 the following 3 sections:-

Section 69A. (a) There shall be established and set up on the books of the commonwealth a separate fund to be known as the Bay State Competitiveness Investment Trust Fund, in this section called the fund. The comptroller shall administer the fund and shall be its trustee. There shall be credited to the fund amounts transferred under clause (b) of section 5C of chapter 29 and amounts deposited from other sources by law.

(b) At the end of each fiscal year, the comptroller shall transfer from the fund, without further appropriation, the following amounts:
(1) not more than $25,000,000 to the Massachusetts Life Sciences Investment Fund established by section 5 of chapter 23I; and
(2) after making the transfer required by clause (1), the balance as follows, but if the balance in the fund is insufficient the following transfers shall be proportionately reduced accordingly:
(i) $15,000,000 to the Affordable Housing Trust Fund, established by section 2 of chapter 121D;
(ii) $7,000,000 to the Massachusetts Cultural Facilities Fund, established by section 42 of chapter 23G;
(iii) $15,000,000 to the Workforce Competitiveness Trust Fund, established by section 2WWW of chapter 29;
(iv) $15,000,000 to the Heating Assistance Trust Fund, established by section 69B;
(v) $3,000,000 to the Regional Efficiency Assistance Grants Trust Fund, established by section 69C; and
(vi) $20,000,000 to the Massachusetts Alternative and Clean Energy Investment Trust Fund, established by section 35FF of chapter 10.

Section 69B. (a) There shall be established and set up on the books of the commonwealth a separate fund, to be known as the Heating Assistance Trust Fund, in this section called the fund. The fund shall consist of the monies transferred under subclause (iv) of clause (2) of subsection (b) of section 69A, and all other monies credited or transferred to the fund from any other fund or source pursuant to law.
(b) The director of housing and community development shall be the trustee of the fund and shall expend monies in the fund, without further appropriation but subject to approval of an annual spending plan by the secretary of administration and finance, to supplement funds from the federal Low Income Home Energy Assistance Program, 42 U.S.C. sections 8621 et seq., for the purpose of assisting low-income elders, working families and other households with the purchase of heating oil, propane and natural gas, electricity and other primary or secondary heating sources. The director shall adopt regulations, after a public hearing, governing these expenditures.

Section 69C. (a) There shall be established and set up on the books of the commonwealth a separate fund, to be known as the Regional Efficiency Assistance Grants Trust Fund, in this section called the fund. The fund shall consist of the monies transferred under subclause (v) of clause (2) of subsection (b) of section 69A, and all other monies credited or transferred to the fund from any other fund or source pursuant to law.
(b) The deputy commissioner of revenue for local services shall be the trustee of the fund. The deputy commissioner shall expend monies in the fund, without further appropriation but subject to approval of an annual spending plan by the secretary of administration and finance, and in consultation with the department of housing and community development and other relevant agencies, to provide competitive grants to municipalities, regional planning agencies and councils of government, to encourage regional cooperation and efficiency. The deputy commissioner shall adopt regulations, after a public hearing, governing these expenditures.

(C) Chapter 29 of the General Laws is hereby amended by striking out section 5C and inserting in place thereof the following section:-

Section 5C. The comptroller shall annually, on or before October 31, certify to the secretary of administration and finance the amount of the consolidated net surplus in the budgetary funds at the close of the preceding fiscal year. The amounts so certified shall be disposed as follows:

(a) an amount equal to 1/2 of 1 per cent of the total revenue from taxes in the preceding fiscal year shall be available to be used as revenue for the current fiscal year and 1/2 of 1 per cent of the total revenue from taxes in the preceding fiscal year, less the interest received during the preceding fiscal year on amounts in the Commonwealth Stabilization Fund, shall be transferred to the Commonwealth Stabilization Fund;

(b) an amount of not more than $100,000,000 shall be transferred to the Bay State Competitiveness Investment Trust Fund established by section 69A of chapter 10; and

(c) any remaining amount of the consolidated net surplus after amounts made available in clauses (a) and (b) shall be transferred to the Commonwealth Stabilization Fund.

All transfers specified in this section shall be made from the undesignated fund balances in the budgetary funds proportionally from those undesignated fund balances, but no such transfer shall cause a deficit in any of those funds. Before certifying the consolidated net surplus in accordance with this section, the comptroller shall, to the extent possible, eliminate deficits in any fund contributing to the surplus by transferring positive fund balances from any other fund contributing to the surplus.

(D) This section shall take effect as of June 30, 2008.
 
 

Summary:
This section provides for the distribution of the consolidated net surplus. It amends the requirement to deposit 1/2 percent of the surplus in the Stabilization Fund, by subtracting from that amount the fund's accumulated interest during the fiscal year. It then provides for transferring the remaining surplus to the Bay State Competitiveness Investment Trust Fund, where it will be invested in specified state priorities: life sciences, affordable housing, cultural facilities, workforce training, heating assistance, regional grants, and clean energy.



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